BAE battles for £2.5bn satellite deal

A CONSORTIUM led by BAE Systems is fighting to be the preferred bidder for a £2.5bn contract with the Ministry of Defence, it has been reported.

The MoD is considering who who will build and operate the next generation of military communications satellite known as Skynet 5, the Sunday Telegraph says.

The consortium, Paradigm Secure Communications, includes EADS, the European defence and aerospace group. It is competing with Lockheed Martin‘s Rosetta Global Communications, in which both BT and BAE Systems also have a stake.

The outcome of the deal will have a bearing on the future of Astrium, the satellite company owned by EADS and BAE.

Skynet 5 will be the biggest contract awarded so far by the MoD under the Private Finance Initiative. A decision is expected next week.